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WA AG says T-Mobile ads ‘deceptive,’ forces refunds

Washington State Attorney General Bob Ferguson has ordered T-Mobile to change “deceptive advertising” that promised no contracts for customers, notably coinciding with the carrier’s long-awaited announcement of iPhone availability. The Attorney General’s Office said the company “failed to disclose that customers who purchase a phone using the 24-month payment must carry a wireless service agreement with T-Mobile for the entire 24 months — or pay the full balance owed on phone if they cancel earlier.” Customers who cancel the service “face an unanticipated balloon payment” for the phone, which the office notes is often higher than termination fees for other carriers.

T-Mobile has agreed to stop misrepresenting the lack of restrictions, and will disclose that customers who terminate service before a device is paid off will have to pay the full balance upon cancellation. All consumers who purchased T-Mobile service or equipment between March 26 and April 25 can obtain a full refund for the purchased device and cancel service plans without paying the remaining balance owed on devices. Although T-Mobile is obligated to contact customers about their rights, consumers can call T-Mobile at 1-877-746-0909 for more information — or dial 611 from a T-Mobile phone. [via 9to5Mac]